Lurker Posted February 16, 2012 Posted February 16, 2012 Not sure thats the case Lurker. Import costs and other small cars like the VW' date='Fiat,Renault,Citroen as well as the BMWs and Mercs mean that Jap cars are still not getting a strong foothold there.Also,most cars in Europe consume Diesel.[/quote'] True Yoda but comparison with European manufacturer will throw in another variable that I wanted to stay clear of. Fiat, Renault and Citroen have the small car market cornered. Even the American car makers - Ford & GM - dont sell their usual cars their (or in Australia). By the by for whatever its worth Japanese cars outscores Citroens, Fiats and Renaults (not so much VW and others) but their cost is often more than the mentioned. Another reason why low end Corrollas are not so low end in Europe.
Desi Cartman Posted February 16, 2012 Posted February 16, 2012 Hmm, i did not say it is. For the nth time - My point is - How are Indians supposed to buy cars when it is so exorbitantly priced relative to their average incomes? when an average Indian household pays their 2 years worth of salary, all they will get is an entry level compact car. Compare that in the US, where a middle class family's 2 years worth of income can get them a top of the range Ferrari. Thats the disparity that i am trying to focus on. The problem is that people in India are still poorer than people in the west. BTW some people in India (closer to big cities) have had the property prices go up many times and people are much better off. A piece of agricultural land in Punjab worth 12 lakh in 2000 is now worth 6-7 crore now. You are mixing 2 issues here. IMO the problem is that people are not willing to buy within their means. I have personally known people who refuse to buy Maruti Alto as its not considered a *nice* car so instead they will be without a car or use a bike/scooter. There are many options for people who make 2-3 lkhs a year in India. You can buy a used Santro for 150k.
surajmal Posted February 16, 2012 Author Posted February 16, 2012 Couple of other factors that may be contributing to higher prices Low volumes : China sold 12 million cars last year while India was just about 2 million. Indian dealerships as well as car companies also maintain higher margins that is why they post profits year after year. While in the west, there are celebrations if a company posts profits for 2 consecutive quarters. High duties on imported models used to be beneficial to Indian car makers only but now even foreign car makers that have setup shop in India are taking advantage of this noncompetitive environment. Simple solution is open up the car market. The Tatas, Hyundais and Marutis have enjoyed the fruits of this rigged game for far too long. In an open market they'll either adapt (or come to reality of low/zero profit margins) or die like Hindustan Motors.
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